Very recently, empirical studies have shown that the ranking of industries with respect to the level of firm turnover is highly correlated across countries. That is, some industries tend to have high levels of evoluationary turbulence". while in others the level of firm turnover is low. The aim of my thesis is to explain these differences between industries by investigating theoretically and empirically, the link between industry structure and the level of firm turnover. This project is of great relevance for industrial economics, but it is also important for the (analysis of labour markets, in particular job creation an destruction.
The first part of my thesis is purely empirical and consists in carrying on with my previous work by analyzing whether the observed regularities mentioned above still hold at a more desegregated level (four- or five digit).
The theoretical literature on industry dynamics has so far failed to make any predictions about the link between differences in industry structure and the differences in the level of firm turnover. In the second and main part of my thesis, I should endeavour to fill this gap in the literature. As a framework, I want to use some existing tractable stochastic industry mode and enrich their strategic environment by adding elements of the literature on industry-specific mechanisms, e.g. the literature on the relationship between industry structure and cost structure, the literature on R&D. innovation and patent races. and the literature on the effects of product differentiation. advertising and brand loyalty on entry and industry structure. Empirical tests of the theoretical results will conclude my project.